In which of the following examples is excess burden not present?
a. Harriet decides to give up her Saturday hours at her law office after income tax rates rise.
b. Rudolf still smokes three packs a day even after the excise tax on cigarettes rose 10 cents a pack.
c. Wilma reduced the automatic payroll deduction to her savings account after the tax on interest was imposed.
d. Harper decided to take a vacation in Bermuda rather than invest in stocks after the tax rate on capital gains was increased.
b
You might also like to view...
A consumer is maximizing her utility with a particular money income when:
A. the total utility derived from each product consumed is the same. B. MU a /P a = MU b /P b = MU c /P c = . . . = MU n /P n . C. MU a = MU b = MU c = . . . = MU n . D. P a = P b = P c = . . . = P
Marginal utility is calculated as
A) total utility/number of units consumed. B) change in total utility/number of units consumed. C) change in total utility/change in number of units consumed. D) total utility/change in number of units consumed.